Total SA in R140m expansion project

Energy firm Total South Africa will invest R140-million over two years to upgrade its blending plant and expand the capacity of its fuel depot at Durban’s Island View Terminal facility, it announced on Wednesday.

The investment follows the signing of a 15-year lease with Transnet National Port Authority.

“We see this as a major vote of confidence in South Africa, as well as in other countries in southern Africa, as some of the additional lubricants we will be blending will be exported to Southern African Development Community countries, which we see as a growth market for our lubricants,” Total South Africa’s CEO, Christian des Closieres, said in a statement.

Work on the plants is expected to be complete by the end of 2014.

“Our roots in South Africa go back to the mid-1950s and we are committed to growing our business in South Africa and southern Africa through sustainably growing our infrastructure and distribution channels in the fuels and lubricants markets,” said Des Closieres.

The blending facility upgrade will cost approximately R50-million and focus on modernising filling lines, an on-site laboratory and improving health and safety features and quality control measures.

Expansion of the fuel storage depot will cost about R90-million and will allow 26% of fuel to be stored on-site.

It is expected that the expansion will lead to an improved integration into national infrastructure such as the New Multi Product Pipeline.

“We view this big investment in South Africa as further evidence of the successful partnership we have with our local shareholders in South Africa,” he said. “It also demonstrates our ongoing emphasis on health and safety quality control and catering for future growth.”